UberEATS launches food delivery service in Korea, taking on local rivals

UberEATS launches food delivery service in Korea, taking on local rivals

UberEATS, food delivery service app run by world’s leading ride-booking app developer Uber Technologies Inc., finally ventured into the Korean food delivery service market where competition is already high among local home delivery app providers.

Allen Penn, head of Asia operations at UberEATS said in a press conference on Thursday that the company starts to offer its delivery services in some parts of the capital including Gangnam in southern Seoul where many tech companies have their offices. UberEATS service was first launched in Toronto, Canada, in 2015, and is currently available in 112 cities around the world including Seoul.

UberEATS app works like its riding-booking sister app Uber. When UberEATS app user orders food from a restaurant through the mobile app, the restaurant locates a nearby delivery driver, called delivery partner, asks the driver to collect the food when ready and deliver right to the door of the user.

The app user can track delivery in real time and check estimated delivery time and current location of the delivery driver. UberEATS estimates it would take about 30 to 35 minutes from order to delivery.

The service is currently available in Gangnam District in southern Seoul and Itaewon in central Seoul, and Uber plans to expand the food delivery service to other areas later.

UberEATS has partnered with 200 local eateries including popular Chang Jinwoo’s Kitchen, P.F Chang’s, and Maman Gateau.

Korea has been famed for its vast food delivery industry with diverse delivery food choices other than pizza. Long before food delivery apps proliferated, most restaurants in the country had already delivered food - even promoting 24-hour food delivery service - with their own delivery drivers. The widespread of smartphones has led local app developers who saw great business opportunities in this massive food delivery market to rush to develop food delivery apps.

Currently, local food delivery apps Yogiyo and Baedal Minjok are fiercely competing in the Korean food delivery market, and UberEATs should pull out all the stops to steal customers from the local pioneers. The Korean food delivery market is expected to grow further amid the growing number of single-member households, market observers said.